Biotech Values

[Jonathan Robinson]

Thanks.

On the tweet reactions, the one thing that caught my attention was that small caps went vertical after the last HRC tweet. I have old files all over, and as I get ready to replace the tickers, I was perusing them. Small caps, on average, rallied 20%+ in the month and a half after that tweet, easily recovering the 4+% drop. The issue is we are still below those early Oct highs. The Oct swoon knocked fully 30% off the small caps, almost all recovered in two weeks around Trump's win (bio rally started a week before). Small caps then lost 5-7% through the rest of the year. Price had just recovered the late Nov/Dec modest losses and were near the ealy Oct high before the latest.

Large caps just don't move at all any more....other than the 1 day Trump rally! I think they may all be value traps....big enough they need generalist support, cheap enough that they are obviously cheap, but with the biggest price overhangs and research producrptivity issues. Some midcaps becayse of models have even bigger issues here.

Jon